Tag Archives: MMT

But the impact of the tax hike on the economy remains uncertain, and numerous experts have already said it may lead to further stagnation. The country is in the middle of an economic downturn, they say, and the tax increase will only worsen low inflation.Some U.S. scholars agree. "Taxes are for subtraction and to remove spending power from someone," said Stephanie Kelton, a professor of economics and public policy at Stony Brook University. Kelton, a leading MMT advocate, criticized the...

Lambert Strether posed these links at Naked Capitalism. The VoxEU article was posted here at MNE when it came out. It is cited here if you missed it. The operative post is the Twitter thread that Scott Fullwiler tweeted in response to it.Modern money theory and its implementation and challenges: The case of Japan VoxEU. Thread in response by Fullwiler.Naked CapitalismSee also at Naked Capitalism today.Michael Hudson exceeded himself on this one. Here is the conclusion. The American promise...

Their independence will shrink to policy execution, she says Says Japan policy flawed by hitting gas and brakes together Looks like the last mile has closed.Bloomberg MMT's Kelton Sees Central Banks Quietly Yielding to Governments Yuko Takeo and Masahiro Hidaka

Modern monetary theory (MMT) has recently gained prominence in light of doubts about the effectiveness of monetary policy in addressing economic shortfalls. This column assesses the implications of implementing the theory’s policy prescriptions, and the challenges it presents in the case of Japan – an economy that some have argued has already been subject to such policy. Japan’s labour shortages and low inflation mean modern monetary theory’s fiscal stimulus suggestions may be harder to...

Stephanie Kelton is in Japan talking up MMT. This is a basic post with no negatives. More progress.Nippon.com (Japan)No Problem with Japan's Huge Debts: MMT Advocate Kelton

"Balanced" article on MMT (as one would expect from NPR), but not the usual rant, either. So, progress.NPR (National Public Radio)This Economic Theory Could Be Used To Pay For The Green New Deal Scott Horsely

For Marx and many Marxists, money is based in a commodity; in Modern Monetary Theory (MMT), it is not, being based instead in a social relationship that holds more generally than just to commodity production and exchange. Even so, to the extent that commodity production and exchange are given sway within ‘modern money’ economies, operation of the Marxian ‘law of value’ appears to be compatible with MMT. It is just that, from an MMT perspective, private for-profit market-based activity will...

The MMTer is Warren Mosler in conversation with Eric Peters who reports it. I perused the comments. Out of dozens, only one person gets it. The rest are moronic. Zero HedgeAn MMTer Explains MMT In 320 WordsEric Peters, CIO of One River Asset Management

If the model of the market-compliant democracy has outlived its usefulness, it is time to look for an alternative political vision. It must convince people that politicians can solve the problems of the 21st century. This kind of alternative blueprint for society needs a theoretical basis. Modern Monetary Theory (MMT) can make an important contribution. Understanding MMT enables us to envisage progressive politics without getting tangled up in misguided debates about whether we can ‘afford’...

This morning, a former deputy governor of Australia’s central bank (RBA) published a short Op Ed in the Australian Financial Review (July 16, 2019) – Why there are no free lunches from the RBA – which served as a veiled critique of Modern Monetary Theory (MMT). The problem is that the substantive analysis supported the core of the MMT literature that we have developed over 25 years, refuted the standard macroeconomics textbook treatment of the link between the government and non-government...